GAP Insurance – Issues & Answers
Questions:
– Do you drive a car less than three years old?
– Do you have a lease agreement of 12-36 months, a loan of 60 months or more, or own the car outright?
– Did you know that GAP insurance coverage is available through most auto insurance policies at a fraction of the cost charged by the finance company?
Considerations:
1) Your standard auto insurance policy does not include coverage to pay for the entire value of the vehicle (even if a loan or lease is involved) if a total loss is incurred during the first 3-4 years of ownership or when leasing.
2) Failure to place coverage for your risks means you could be forced to pay thousands of dollars out of pocket if your car is totalled and you don’t have GAP insurance.
3) Failure to correctly place GAP coverage means that you are likely paying hundreds of dollars more per year to the finance company than you need to. GAP coverage charges paid to the finance company are typically $15-25 per month while the same coverage provided through your auto insurance policy will typically be $25-35 per year.
4) New Car Replacement Coverage is another option offered by some auto insurance carriers that provides for current model year replacement in the event of a total loss. This coverage is only available for autos purchased as new and only if New Car Replacement coverage is placed within 365 days of purchase.
Assistance:
Contact us for a full review and audit of your current auto policy to make sure you have the coverages you need.
Comments
Not found any comments yet.